Question 1

All of the following are reasons that health care costs have risen so much in the past few decades EXCEPT

Accepted Answer

A)  the aging population. 
B)  higher imports. 
C)  new technologies. 
D)  third party payments. 
A)  the aging population. 
B)  higher imports. 
C)  new technologies. 
D)  third party payments.

Question 2

The official poverty level is based on pretax income including cash. Which of the following statements is correct regarding this official specification of poverty?

Accepted Answer

A)  This is a good definition of poverty since it is made up of the income from productive resources. 
B)  This is not a good definition of poverty because our tax structure consists of different tax brackets based on income. 
C)  This is not a good definition of poverty because it does not include in-kind subsidies. 
D)  This is a good definition of poverty because it is easy to measure. 
A)  This is a good definition of poverty since it is made up of the income from productive resources. 
B)  This is not a good definition of poverty because our tax structure consists of different tax brackets based on income. 
C)  This is not a good definition of poverty because it does not include in-kind subsidies. 
D)  This is a good definition of poverty because it is easy to measure.

Question 3

The merit standard refers to:

Accepted Answer

A)  "To each according to her need." 
B)  "To each exactly the same." 
C)  "To each according to her productivity." 
D)  "To each according to his ability." 
A)  "To each according to her need." 
B)  "To each exactly the same." 
C)  "To each according to her productivity." 
D)  "To each according to his ability."

Question 4

Which of the following statements is FALSE?

Accepted Answer

A)  The official absolute poverty level in the United States is far above the average income of many countries in the world. 
B)  In a relative sense, the problem of poverty will always exist. 
C)  An equal distribution of income would eliminate relative poverty. 
D)  An equal distribution of income would eliminate absolute poverty. 
A)  The official absolute poverty level in the United States is far above the average income of many countries in the world. 
B)  In a relative sense, the problem of poverty will always exist. 
C)  An equal distribution of income would eliminate relative poverty. 
D)  An equal distribution of income would eliminate absolute poverty.

Question 5

Which of the following is considered a "third party" within the medical services industry?

Accepted Answer

A)  The patient 
B)  The private insurance company 
C)  The for-profit hospital 
D)  The medical provider, i.e. physician 
A)  The patient 
B)  The private insurance company 
C)  The for-profit hospital 
D)  The medical provider, i.e. physician

Question 6

The age-earning cycle predicts that a typical person will

Accepted Answer

A)  be earning $50,000 in the year 2010. 
B)  be earning the lowest income right before retirement. 
C)  be earning the highest income right before retirement. 
D)  be earning the highest income at about the age 45-50. 
A)  be earning $50,000 in the year 2010. 
B)  be earning the lowest income right before retirement. 
C)  be earning the highest income right before retirement. 
D)  be earning the highest income at about the age 45-50.

Question 7

Which of the following is NOT considered a determinant of income differences?

Accepted Answer

A)  productivity 
B)  age 
C)  discrimination 
D)  equity or fairness 
A)  productivity 
B)  age 
C)  discrimination 
D)  equity or fairness

Question 8

What impact do private insurance companies and Medicare have on national medical costs?

Accepted Answer

A)  Medical costs go up because insurance leads to an increase in the quantity demanded of medical services. 
B)  Medical costs go up because insurance will lead to the reduction in the supply of medical services due to the amount of paperwork required. 
C)  Medical cost are unaffected by insurance companies. 
D)  Medical costs go down because the insurance company pays the bill. 
A)  Medical costs go up because insurance leads to an increase in the quantity demanded of medical services. 
B)  Medical costs go up because insurance will lead to the reduction in the supply of medical services due to the amount of paperwork required. 
C)  Medical cost are unaffected by insurance companies. 
D)  Medical costs go down because the insurance company pays the bill.

Question 9

-Refer to the above figure. Which of the graphs are consistent with the age-earnings profile?

Accepted Answer

A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  Panel D 
A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  Panel D

Question 10

Relative poverty refers to

Accepted Answer

A)  how a family's income compares to the incomes of those around them. 
B)  poverty levels at a stated income cutoff. 
C)  the number of poor in one state relative to another. 
D)  None of the above. 
A)  how a family's income compares to the incomes of those around them. 
B)  poverty levels at a stated income cutoff. 
C)  the number of poor in one state relative to another. 
D)  None of the above.

Question 11

The official poverty rate in the United States includes

Accepted Answer

A)  less than 5 percent of the population. 
B)  between 10 and 15 percent of the population. 
C)  between 20 to 25 percent of the population. 
D)  over 35 percent of the population. 
A)  less than 5 percent of the population. 
B)  between 10 and 15 percent of the population. 
C)  between 20 to 25 percent of the population. 
D)  over 35 percent of the population.

Question 12

Currently less than ________ of all health care spending is paid by individuals.

Accepted Answer

A)  60 percent. 
B)  35 percent. 
C)  20 percent. 
D)  5 percent. 
A)  60 percent. 
B)  35 percent. 
C)  20 percent. 
D)  5 percent.

Question 13

If an individual receives in-kind transfers from the government in the form of food stamps, public housing, and so on, his money income is

Accepted Answer

A)  less than his total income. 
B)  greater than his total income. 
C)  the same as his total income. 
D)  equal to his in-kind income plus his wages. 
A)  less than his total income. 
B)  greater than his total income. 
C)  the same as his total income. 
D)  equal to his in-kind income plus his wages.

Question 14

Once the national health care program goes into effect, we can expect

Accepted Answer

A)  the quantity of health care services supplied will increase. 
B)  total expenditures on health care will decrease. 
C)  more individuals will pay more out of pocket expenses. 
D)  moral hazard will increase. 
A)  the quantity of health care services supplied will increase. 
B)  total expenditures on health care will decrease. 
C)  more individuals will pay more out of pocket expenses. 
D)  moral hazard will increase.

Question 15

Which of the following statements are correct about the age-earnings cycle?

Accepted Answer

A)  Earnings generally increase up till age 30 and then steadily decrease. 
B)  Earnings increase throughout a prison's lifetime until they reach retirement. 
C)  Earnings increase with age because workers become more productive as they age until around 50 years. Around 50 the effects of aging outweighs the further increases in productivity. 
D)  Since every person is different we can reach no general conclusions about the age-earnings cycle. 
A)  Earnings generally increase up till age 30 and then steadily decrease. 
B)  Earnings increase throughout a prison's lifetime until they reach retirement. 
C)  Earnings increase with age because workers become more productive as they age until around 50 years. Around 50 the effects of aging outweighs the further increases in productivity. 
D)  Since every person is different we can reach no general conclusions about the age-earnings cycle.

Question 16

Income in the form of goods and services is

Accepted Answer

A)  known as money income. 
B)  known as income in kind. 
C)  not considered income by economists. 
D)  not part of wealth. 
A)  known as money income. 
B)  known as income in kind. 
C)  not considered income by economists. 
D)  not part of wealth.

Question 17

The more bowed out the Lorenz curve is, the

Accepted Answer

A)  more equal the distribution of income. 
B)  less equal the distribution of income. 
C)  richer the society. 
D)  poorer the society. 
A)  more equal the distribution of income. 
B)  less equal the distribution of income. 
C)  richer the society. 
D)  poorer the society.

Question 18

Which of the following is NOT a subsidy in the new the federal government's new national health care program?

Accepted Answer

A)  Families with incomes up to 133% of the federal poverty level are eligible for federal Medicaid coverage. 
B)  Families with incomes up to 400% of the federal poverty level are eligible for thousands of dollars in tax subsidies per year (amounts vary with family incomes). 
C)  Tax credits are available to businesses providing health insurance to 25 or fewer workers and paying annual salaries averaging no more than $50,000. 
D)  A special subsidy rate of 3.8% is applied to nearly all income earnings above $200,000 for individuals or $250,000 for married couples. 
A)  Families with incomes up to 133% of the federal poverty level are eligible for federal Medicaid coverage. 
B)  Families with incomes up to 400% of the federal poverty level are eligible for thousands of dollars in tax subsidies per year (amounts vary with family incomes). 
C)  Tax credits are available to businesses providing health insurance to 25 or fewer workers and paying annual salaries averaging no more than $50,000. 
D)  A special subsidy rate of 3.8% is applied to nearly all income earnings above $200,000 for individuals or $250,000 for married couples.

Question 19

Which of the following is an employer mandate in the new the federal government's new national health care program?

Accepted Answer

A)  Under the new program, the federal government will coordinate the establishment of health insurance exchanges. 
B)  A tax rate of 3.8 percent will be assessed on nearly all earnings above $200,000 per year for individuals and above $250,000 per year for married couples. 
C)  Firms with at least 50 employees must either provide health insurance or pay fines when uninsured employees receive tax subsidies to purchase insurance. 
D)  Nearly all U.S. residents must either purchase health insurance coverage or pay a fine of up to $750 per year for an individual (up to $2,250 per year for a family). 
A)  Under the new program, the federal government will coordinate the establishment of health insurance exchanges. 
B)  A tax rate of 3.8 percent will be assessed on nearly all earnings above $200,000 per year for individuals and above $250,000 per year for married couples. 
C)  Firms with at least 50 employees must either provide health insurance or pay fines when uninsured employees receive tax subsidies to purchase insurance. 
D)  Nearly all U.S. residents must either purchase health insurance coverage or pay a fine of up to $750 per year for an individual (up to $2,250 per year for a family).

Question 20

Which of the following statements about the Social Security (OASDI) program is FALSE?

Accepted Answer

A)  Benefits are paid to individuals who would be financially secure in their absence. 
B)  Benefits are based on need. 
C)  Benefits are an intergenerational transfer program from those who work to those who don't work. 
D)  When an insured worker dies, benefits continue for widows or other dependents. 
A)  Benefits are paid to individuals who would be financially secure in their absence. 
B)  Benefits are based on need. 
C)  Benefits are an intergenerational transfer program from those who work to those who don't work. 
D)  When an insured worker dies, benefits continue for widows or other dependents.

Exam 30: Income, Poverty, and Health Care

All of the following are reasons that health care costs have risen so much in the past few decades EXCEPT

The official poverty level is based on pretax income including cash. Which of the following statements is correct regarding this official specification of poverty?

The merit standard refers to:

Which of the following statements is FALSE?

Which of the following is considered a "third party" within the medical services industry?

The age-earning cycle predicts that a typical person will

Which of the following is NOT considered a determinant of income differences?

What impact do private insurance companies and Medicare have on national medical costs?

-Refer to the above figure. Which of the graphs are consistent with the age-earnings profile?

Relative poverty refers to

The official poverty rate in the United States includes

Currently less than ________ of all health care spending is paid by individuals.

If an individual receives in-kind transfers from the government in the form of food stamps, public housing, and so on, his money income is

Once the national health care program goes into effect, we can expect

Which of the following statements are correct about the age-earnings cycle?

Income in the form of goods and services is

The more bowed out the Lorenz curve is, the

Which of the following is NOT a subsidy in the new the federal government's new national health care program?

Which of the following is an employer mandate in the new the federal government's new national health care program?

Which of the following statements about the Social Security (OASDI) program is FALSE?

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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